In a recently unveiled memoir, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he examines that turbulent period during Greece's financial crisis.
An Unconventional Choice
According to Tsipras's recollections, he appointed that maverick academic Yanis Varoufakis to be his treasury head primarily due to the latter's global profile and Varoufakis's “extremely attractive” skills as a communicator.
“He was, actually, more like a celebrity rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader suggests that Varoufakis had a personal motives which included advancing Varoufakis's publications and testing out his own game theories using Greece instead of genuinely fighting for the country's financial survival.
He noted how those negotiations to avoid insolvency became “not just a way of achieving a better deal for Greece. They were a test, an historic chance to demonstrate the truth of his ideas.”
Critical Negotiations
During rollercoaster negotiations, the country came perilously close to leaving the single currency area.
On the line was both Greece's future but also the severe austerity measures required in exchange for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to find financing from other sources, including a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those harsh bailout terms were put to a public vote, a move that threw the EU into a further crisis of identity.
Although the vote was won decisively by those against austerity, the prime minister had little option to ignore the result and agree to a bailout package from creditors which proved to be even harsher.
Final Straw
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the figure who drew publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan involving establishing a secondary currency as well as distributing coupons to pensioners, Tsipras knew it was game over questioning him: “Are you serious?”
Lasting Criticism
In the book, Tsipras asserts how his former ally had proved himself to be “unsuitable for a deal demanding intricate and delicate management.”
Tsipras also claimed how Varoufakis's confrontational style left him increasingly isolated with colleagues, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
The retelling of history has been met with fury along with shock among certain groups, whereas Varoufakis has maintained a deafening silence on the matter.
